PROPERTY REPORT – Dawn, Mashold talks collapse

Staff Writer

LISTED property concerns, Mashonaland Holdings Ltd (Mashold) and Dawn Properties Ltd, have halted plans for a possible merger, businessdigest can reveal.



dana, Arial, Helvetica, sans-serif”>In a cautionary statement to shareholders last week, Mashold said negotiations leading to a possible enhancement in the asset base of the company had been discontinued. Dawn announced this week that negotiations have been suspended indefinitely.


Analysts said the merger would have created a huge property concern with interests in residential, industrial and commercial property.


The Mashold property portfolio, according to information sent out to shareholders last year, would be acquired from Amzim’s Anglo American Corporation Zimbabwe Pension Fund, Anglo American Associated Pension Fund, Richard Ellis Real Estate Ltd, Intermarket Life Assurance Ltd (IMH) and property minorities.


When it entered the property sector, Mashold snapped up Intermarket Life Towers for a cool $11,5 billion as it transformed itself into a fully-fledged property investment firm.


Intermarket Life Towers was at that time a subsidiary of Property Development Associates (Pvt) Ltd.


Property Developments Associates was 79,29% owned by Intermarket Holdings Ltd, 4,855% by Anglo American Associated Companies Pension Fund, 4,855% by Anglo American Corporation Zimbabwe Pension Fund and 11% by Meikles Consolidated Holdings Ltd.


Other properties on Mashold’s purchase list included Anglo American’s Charter House, Intermarket Centre, Chiyedza House and West End Clinic.

Until its listing on the Zimbabwe Stock Exchange (ZSE) in September last year, Dawn was a wholly-owned subsidiary of the Zimsun Leisure group.

Zimsun now has 19,69% equity.


Dawn was incorporated as a variable rate loan stock company by converting its ordinary shares into linked units.


It is an investment property holding company and through its 100% owned subsidiaries owns properties in the tourism sector.


Dawn has a stake in all of the Zimsun Leisure group hotels.


Dawn owns more than 10 hotels including Carribea Bay Hotel, Crowne Plaza Monomatapa Hotel, Elephant Hills, Great Zimbabwe, Hwange Safari Lodge, Lake View Inn, and Troutbeck Inn & Estate. Dawn also owns Holiday Inn Mutare, Express Holiday Inn and Carribea Bay Marina.


Mashold’s changeover into a fully-fledged property investment firm listed on the ZSE resulted in about $32 billion being splashed on acquiring various buildings and stands in upmarket areas.


Dawn chief executive officer Emmanuel Manyika confirmed the collapse of the negotiations.


“We have stopped negotiations but I can’t disclose whom we were negotiating with and why we have stopped negotiations,” he said.


“We are a listed entity and the way forward is to look for opportunities which will best suit us as our strategy for growth has not changed,” he said.


Mashold chief executive officer Justin Dowa could not be reached for comment as he was said to be attending a series of meetings.

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